Portillo's Inc. has recently released its 10-K report, providing a detailed insight into its financial performance and strategic direction. The company, founded in 1963 and based in Oak Brook, Illinois, operates fast-casual restaurants across the United States, offering a menu that includes Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut and cheese fries, homemade chocolate cakes, and chocolate cake shake. Additionally, it operates a food truck under The Beef Bus name and a ghost kitchen, along with providing delivery services through its application and website, as well as third-party delivery platforms.
In fiscal 2025, Portillo's reported total revenue of $732.1 million, marking a 3.0% increase from the previous year. However, same-restaurant sales experienced a decrease of -0.5%. The company's operating income decreased by $14.4 million to $43.7 million, while net income also saw a decline of $14.0 million to $21.1 million. Moreover, both Restaurant-Level Adjusted EBITDA and Adjusted EBITDA decreased by $9.7 million to $158.4 million and $7.4 million to $97.3 million, respectively.
The company faced challenges in its expansion strategy, particularly in Texas, leading to a strategic reset in its development approach. Portillo's plans to enter new markets more gradually, focusing on building awareness and adoption among consumers who are not yet familiar with the brand. It aims to improve unit economics and the guest experience through the refinement of its restaurant prototype. In fiscal 2025, Portillo's opened eight new restaurants, including its first location in Georgia and its first in-line restaurant.
Looking ahead to fiscal 2026, the company aims to strengthen transaction growth across its restaurants, optimize returns on new restaurants, and leverage its loyalty program, Portillo’s Perks™, to drive trial and frequency, prioritize operational excellence, and invest in its team members. Additionally, Portillo's plans to open eight new restaurants in fiscal 2026, including its first airport location at Dallas–Fort Worth International Airport and its second in-line location.
The 10-K report also provides a detailed breakdown of the company's consolidated results of operations, including revenues, net income, and various expenses such as food, beverage, and packaging costs, labor expenses, occupancy expenses, and general and administrative expenses. These figures offer a comprehensive view of Portillo's financial performance and operational efficiency. Following these announcements, the company's shares moved 4.72%, and are now trading at a price of $5.77. For the full picture, make sure to review Portillo's's 10-K report.
